Understanding and Leading Change: Fiber One Case Study Report

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This report delves into the multifaceted aspects of leading organizational change, using the Fiber One confectionery company as a case study. It begins by examining the impact of change on organizational strategy and operations, highlighting how companies adapt to market shifts and customer demands, such as the increasing preference for healthier food options. The report then explores the internal and external drivers of change, including political, technological, economic, and social influences, and their effects on leadership, team dynamics, and individual behavior. It also discusses strategies to minimize the negative impacts of change on organizational behavior. Further, the report investigates the barriers to change and their influence on leadership decision-making, followed by an analysis of different leadership approaches and their contributions to organizational change. The report emphasizes the importance of market research, strategic adaptation, and effective leadership in navigating the complexities of change within a competitive business environment.
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Understanding and
Leading Change
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Impact of change on organisational strategy and operations...........................................3
P2. The internal and external drivers for change that affect leadership. Team and individual
behaviour within organisation................................................................................................5
P3. Measures to minimise the negative impact of changes on organisational behaviour......8
TASK 2............................................................................................................................................9
P4. Barriers to change and their influence on leadership decision making............................9
TASK 3..........................................................................................................................................11
P5. Contribution of different leadership approaches regarding organisational change........11
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
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INTRODUCTION
Changes refers to some event or activity that may happen within or outside the
organisation which affect its operations either in positive or negative manner. These changes
may be in terms of plans, policies, strategies, technologies and procedure which support an
organisation to achieve success at marketplace (Alvesson and Sveningsson, 2015). Fiber one is a
multinational confectionery company which deals in variety of product categories like chocolate
bars, brownie, cookies, candy etc. This report explains about the impact of changes on
organisational strategy and operations along with the impact of internal as well as external
drivers of change on team, leadership and individual behaviour. Further it describe about the
measures to minimise negative impact, barrier to changes and contribution of different leadership
approaches for organisational changes.
TASK 1
P1. Impact of change on organisational strategy and operations
An organisational changes refers to the process of changing the processes, procedure,
policies, culture and technology etc. in order to enhance its position in its market place. These
changes are generally anticipated by organisation for dealing with the competition present in
market and changes in business environment. These changes or improvement over current
process as well as services support companies to keep their customers satisfied and maintaining a
long term relation with them. But in order to implement these changes effectively and according
to the requirement of business environment, a company must conduct market research on regular
bases. This will help them in gathering the information regarding the expectation of customers
toward company and new approaches that are being implemented by competitors for attracting
customers toward their services (Bin Taher, Krotov and Silva, 2015). Apart from this market
research also support in determining the growth opportunities that are present in market.
There are two well known brand named as Fiber one and Fox's confectionery which
performs their operations in UK. Both the organisations goes through a majority of changes in
their business operation to fulfil the need of their customers, but now both are consider as most
successful brand. As these changes supported them in aligning their product or services as per
the demand of customers and they get succeed in penetrating their business activities in this
competitive market. Both the companies offer product related to chocolates, candy etc. which
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provide high competition to one another. As the taste and preference of customers keep on
changing with the introduction of other alternatives in totally a new flavours at relatively lower
price which lead company to bring changes in their existing products and services. The major
change in market that affect the operations of both the company up-to large extent is the
attraction of customers toward healthy and nutrition based food item (Doppelt, 2017). In order to
cope up with this changes both the companies work over improving their products as well as
services. Following table describe about the area which experienced changes and action that are
taken by both the companies for dealing with such changes:
Actions Fiber one Fox's confectionery
Change in organisational
Operations
Fiber one confectionery
company, operates in UK by
offering a wide range of
products like chocolate bars,
candy, cookies etc. But with
the increasing demand of
customers toward healthy and
fat free products. For dealing
with this challenge Fiber one
has decided to started offering
yogurt made up with ultra-
filtered milk. This product will
deliver the the benefit which
modern customers are seeking
for i.e. it provide high protein
with less sugar, great taste and
simple ingredients (Product
innovation, 2019).
Fox's confectionery is a
medium sized company
situated in UK and deals in
offer variety of products. It
includes chocolates, milk
shakes, candy, biscuits and
many more. It is a competitor
of Fiber one. With the
increasing concern of people
toward healthy food due to
increase in obesity problem,
people has started switching
the chocolates or candies with
other alternatives. In order to
overcome this issue Fox's
confectionery has decided to
launch its new milkshake
flavoured biscuits. These
biscuits are in banana and
strawberry flavour which are
made up of wholemeal and
contain only 78 calories
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without any artificial colours
and preservatives.
Strategy used by organisation Fiber one changes its
marketing strategy up-to great
extent for launching its new
product. As, Earlier its target
market for chocolate is
children and teenage people
but now it is targeting health
conscious people from all age
group by offering Yogurt with
ultra-filtered milk (Harris,
2012).
Apart from this it is also
required to change its
production process as
company is planning to launch
a totally different product i.e.
yogurt. For this they have
change their distribution
channel and supplier for
arranging raw material and
delivering products to
customers.
Fox's confectionery changes its
marketing strategy for
positioning its new range
products. For this it started
using price skimming that
support them in maintaining
the customers for longer time
period. Apart from this it also
required to change the process
it use for producing their
current biscuits as they are
going to add more flavours
into their biscuits.
P2. The internal and external drivers for change that affect leadership. Team and individual
behaviour within organisation
The expansion of industrial sector at international level bring up several development and
growth opportunities for organisations working under it. But this expansion the threat of changes
also become higher, because globalisation of organisation increases the competition which
further raise the probability of changes among policies, operations and functions performed by
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companies. These changes are generally grown up from some drivers or factors which force the
industrial players to bring up changes which also have an huge impact over the team, leadership
and individual behaviour. In order to cope up with these changes Fiber one must focuses over
analysing the marketing situation and try to predict the changes that may affect its operations so
that proper measures can be taken. This information will further support company to formulate
strategies and policies prior to these changes so that impact may be adverse for Fiber one's
growth and success. These change driver are generally of two types:
Internal driver of change:- It refers to some events, things or situations that occurs
within the organisation which influence management to bring changes in its current structure or
operations (Harris, 2012). These driving forces are under the control of company and that can be
implemented effectively without any adverse affect. For analysing these internal change driver
SWOT analysis can be performed. Following are the internal driver force:
Strength Weakness
The number of high skilled and competent staff
is the major strength of Fiber one.
Change drivers: This factor act as a change
driver for Fiber one, as they modify their
operations as per change in external
environment. These changes easily get
accepted and then implement with its
workforce effectively.
One of the major weakness in front of Fiber
one company is some product have complaints
that product don't have good taste.
Change drivers: This weakness act as a
change driver for Fiber one and for improving
this factor company started adding more
flavours to their chocolates like Carmel.
Threat Opportunity
Increasing number of competitors which
started offering nutritional product which
provide additional health benefit to fitness
freak people.
Change driver:- This factor act as a change
driver for Fiber one and company planned to
launch a new category product i.e. yogurt with
ultra-filtered milk.
One the major opportunity present in front of
company is product and business expansion
over several geographical regions.
Change drivers:- This opportunity is act as a
change driver which influence Fiber one to opt
an option of brand extension by launching a
new product i.e. yogurt made up of ultra-
filtered milk under YQ, brand name.
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External driver of change:- It can be defines as situations, event or things which occurs
outside the business organisation but left a huge impact over the way an organisation performed
its operations at marketplace. Following are the most common change drivers: Political influence:- It refers to the change in laws and regulation those are bring up by
government and which may influence the operations performed by an organisation. These
changes have positive as well as negative impact over the performance of an
organisations and also lead company to change it policies as per the governmental
legislations. For implementing these changes leaders are responsible for motivating its
employees to accept the changes and work accordingly so that quality and supply of Fiber
one will not get affected.
Technology:- New launch or up-gradation of technology also influence the operations
performed by an organisation. The anticipation of new technology also influence the
individual behaviour as they have to change their way of working which sometime
demotivate employees (Hrebiniak, 2013). Apart from this team work is also get affected
as each person is different in term of their skills or capability these differences may
sometimes creates conflicts among team member. So at that time role of a leader is to
keep its employees motivated and ready to accept changes by providing them training for
using new technology and guiding them over their work.
Economical:- The change in economical factor also have an huge impact over the
operations that a company performs. Modification in inflation rate, taxation policies,
trade policies etc. affect the plans and policies followed by Fiber one. So, at the time of
such situation the role of Fiber one's leader is to guide its retailers about the changing
pricing strategy in order to manage the performance of company. On the other hand, such
changes also influence the team work as they have to work over new promotional
strategy to market their product.
Social:- It refers to the change in need and demand of customers regarding the product or
services offered by company. The changing trend, taste and preference also act as a
change driver as comp-any have to bring changes or improve their offerings as per
customer demand. The major change in customer demand is they prefer low calories
product more. These changes also affect the role of leader as they have to guide their
team members for effective marketing of new product i.e. Yogurt with Ultra-filtered
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milk. This change also influence the performance of team member as well as individual
employees as they require more training and guidance to produce and market this
product.
P3. Measures to minimise the negative impact of changes on organisational behaviour
The Changes which are experience by an organisation due to internal as well as external
drives left a huge impact over the operations performed by them and way in which they perform
operations. These changes may have both positive as well as negative impact. But in order to
sustain in market place and maintaining its position among competitors, company must try to
minimize the negative impact of these changes (Kotter, 2012). Fiber one is considered as a
company which highly focuses on satisfying the demand of customers by bringing regular
changes in their products. It always try to implement changes effectively within its business so
that they can maintain their market position. But these changes also affect company adversely, so
in order to eliminate these negative impact following measures can be taken by Fiber one:
Fiber one must perform market research for identifying the changes that may take place
in near future. This support them in formulating strategies and making its employees
aware about these future changes so that they can accept them easily without disturbing
the operations of company.
Fiber one can provide training to its employees on regular bases for sharpening up their
skills and making them prepare for future changes. By getting regular training they
become habitual of working in a changed environment which support company to
implement new technology or process for its production and supply of good without
having negative impact.
Fiber one must analyse the political, economical and social condition of particular region
before entering in that area (Lawrence, 2015). This support them in formulating strategies
as per the demand and requirement of particular region this support them in performing
operations effectively without any adverse or negative impact.
These all are the measures that Fiber one can take in order to implement the changes
effectively in their business operations and minimizing its negative impact over business
operations. Apart from this following are the models that can be used by Fiber one for
minimizing the negative impact of changes.
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Kurt Lewin's Change Management Model: This is also most effective model for
implementing changes in managerial operations and minimizing the negative effects for its
successful implementation. Fiber one can also use this model to implement changes effectively
and achieve competitive advantage. This model consists of three step i.e. unfreeze, Change and
refreeze (Miller and et. al., 2013). In first step Fiber one can arrange meeting with its key person
to determine the changes that must be implemented. After this next step is to plan the methods
for implementing this and making employees aware about this changes through training. Once all
the employees get introduced and become familiar with this new system, next step is to engage
people in this new system and guiding them regularly so that mistakes or errors can be avoided.
PDCA Cycle:- This model is generally used by the organisation for improving,
managing and controlling the operations performed by them, as it focuses over standardizing the
data and minimizing the errors by taking crucial decision. It covers four major elements such as
plan, do, check and action. Fiber one can implement this model for minimizing the negative
impact of changes. Under this model, Fiber one after analysing the relevant information can plan
for the changes that are required to be made for current problem. After planning next is Do phase
plan where a particular solution is implements and its result is then compare with planned
performance in confirmation stage. At last the gap between two performances trying to improve
changes as per planned and then action will be performed.
TASK 2
P4. Barriers to change and their influence on leadership decision making
The changes are the major concern as well as requirement of each company as it support
them to deal with customers expectation as well as increasing competition in marketplace. But
there are number of barrier that are usually faced by organisations while anticipating or
implementing changes within their system or process (NHS England, 2016). These barrier
restrict the companies to grow, hence it is very essential for an enterprise to eliminate those
barriers in order to enhance their performance. Following are some common barriers faced by
organisations in process of bringing changes: Lack of employee involvement:- Major issues that may be faced by Fiber one while
implementing changes is lack of employees involvement. As sometimes employees
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refused to accept the changes and not take any interest in involving a new way to perform
their operations as they get habitual with current work structure.
Government regulations:- Another major issue that may be face by Fiber one is
government regulations which generally restrict companies to changes their system or
way they operate their business. Fiber one operates its business globally therefore it is
one of the major issues that it may face, as it has to take permission from government
before implementing major changes (Peters, 2012).
As the demand of customers toward healthy food is increasing day by day which also
forcing company to improve their product to make it healthier. As various competitors are
offering food items with health benefit this may reduce the market share of company. So in order
to deal with this Fiber one has decided to launch its “Yogurt made with ultra-filtered milk”. This
product is generally decided to launch by targeting a fitness freak people as it have high protein
with less sugar, great taste and simple ingredients without any extra preservatives. But to achieve
success from these changes, company must use Force Field Model which represent the forces
that are in favour or against the changes. It provide an framework for looking over the factor that
may influence the situation or action performed by company. These forces are explained below:
Forces against changes:- Increasing cost:- The cost of production get increased as ingredients involve in these
chocolates are harder to arrange and also the price is very high.
More labour turnover and absenteeism:- As the competition is get increased so for
positioning this chocolates and capturing market share, employees are working overtime
because of targets. This leads to increase in labour turnover.
Forces in favour of changes:- Customers want new product:- The customers are highly demanding such type of
product in market so it is a positive factor which support Fiber one to position and
market these yogurt in UK (Quinn and et. al., 2012). Increase in product category:- As Fiber one is bringing Yogurt which in turn will
support in increasing the product category of company which also support them in
increasing their brand image.
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Governmental support:- The government of various country encourage companies to
bring healthy food and also add nutrition label over their product. This will be beneficial
for Fiber one as they get support from government regarding their product marketing.
Hence from the Force field model analysis it can be interpreted that marketing of this
product will be beneficial for Fiber one as it is highly demanded product and get acceptance in
marketplace.
TASK 3
P5. Contribution of different leadership approaches regarding organisational change
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